As a global leader in the supply of glass packaging, we wanted to keep you updated about the ongoing U.S. investigation regarding glass wine and other similar bottles (740ml-760ml) imported from China, Mexico, and Chile.

Summary

On December 29, 2023, a petition was filed by the U.S. Glass Producers Coalition (Ardagh and the United Steelworkers Union) alleging that imports from these three countries are unfairly traded to the detriment of the U.S. glass wine bottle industry. This petition has led to investigations by the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC).

Current Status

On May 29, 2024, Commerce announced its preliminary determination from its countervailing duty (CVD) investigation.  As a result, importers of in-scope glass bottles from China will be required to pay preliminary cash deposits ranging from 21.14% (for Shandong Changyu) to 202.70% for subject bottles imported after June 6, 2024.

On August 5th, Commerce announced its preliminary antidumping (AD) determination on imports from Chile, China, and Mexico.  The preliminary determination in the AD case for China resulted in a range of additional duties from 11.14% (for Shandong Changyu) to 207.52%.  For Mexico, the preliminary AD rates ranged from 14.96% (for Fevisa) to 96.95%.  The preliminary AD rates are in effect for bottles imported August 9, 2024. 

Following the preliminary rulings, Commerce will issue final CVD and AD determinations, potentially altering the cash deposit rates, either up or down. The ITC will then make a final determination on whether these preliminary duties will apply and become permanent.  ITC hearings on the case take place August 14, 2024.  In a similar case in 2019, the ITC found that glass imports did not injure domestic producers and as a result, the preliminary duties proposed by Commerce were not implemented.  In that situation, cash deposits were returned to customers.

TricorBraun WinePak will begin collecting these duties effective immediately on any new production glass orders that are requested from manufacturers within subject countries.

With our depth and resources, TricorBraun and WinePak are well-positioned to support continuity for your business during these changes:

• Leverage Our Expertise: We have the resources to help you understand and navigate these changes. Reach out to us for scenario planning and strategy development to help with supply chain continuity.
• Extensive Global Network: Benefit from our extensive global network of manufacturers, including multiple domestic manufacturers, to explore your supply chain options. We can also help you explore product alternatives.  
• Transparent Communication: We are committed to providing transparent communication, ensuring you have the information you need to make the best decisions for your business.

Your satisfaction and success remain our top priorities. Please see below for the FAQs, and if there is anything further we can do to help you understand how these changes may affect your business, please let us know.

Read the FAQ's here! Or contact your Packaging Consultant today.